How to handle an expense paid for by the tenant?

Sometimes a tenant will pay for something on behalf of the landlord (e.g. buying a new electric radiator), and therefore have this taken off their rent for the next period.  There are two ways to model this in the system.

For example - the tenant's normal rent is £500, but they pay £100 for an electric radiator because the heating wasn't working, so will only pay £400 next month.


Option 1 - Quick solution

In this option, the rent is simply reduced to £400 for the next rent period. 

You can do this via the Rent Schedule by clicking on the rent due amount for the next period, and changing the amount due as required.  You can enter a note to record why the rent is being reduced:



The only problems with this simple approach are a) if your management fee is % of rent collected, you will have a reduced fee for this next period - so you might need to manually override the fee for that period via the "Landlord Fees" page; b) there is no record of the expense in the landlord's account/statement.  


Option 2 - Show full audit trail

In this approach, you will need to create two expenses:

a) a property (landlord) expense for £100

b) a tenant expense for -£100 (because this is negative, it acts as a tenant credit)

When the tenant pays £400 next month, manually update the allocation to assign the full £500 to the rent, and -£100 to the credit/negative tenant expense:




Pay landlord as normal – that will pass on £500 rent to the landlord (so you will receive the full % commission) but deduct the £100 expense, giving net £400 going over to the landlord as required.

The advantage of this approach is there is full visibility/audit of the expense for both parties.





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